Leroux: CRA owes duty of care to taxpayer
By Alexander Coombes and Christopher Funt
Can a Canadian taxpayer successfully sue the Canada Revenue Agency?
In recent years, taxpayers have brought a number of civil actions against the Canada Revenue Agency (CRA). The allegations in such cases ranged from negligence to fraud, extortion and deceit. Often, taxpayers’ claims are brought as the tort of misfeasance in public office or as claims in negligence. So far, the courts have not clearly determined the scope of CRA’s civil liability. The recent decision of the British Columbia Supreme Court in Leroux v Canada Revenue Agency (2014 BCSC 720) provides guidance on the application of common law torts to CRA conduct.
Mr Leroux, the taxpayer, alleged that he was threatened, deceived and blackmailed by a CRA auditor who was reviewing Mr Leroux’s goods and services tax (GST) and income tax returns. After reassessments were issued, CRA claimed Mr Leroux owed more than $600,000 (£330,000) in taxes, interest and penalties. After an appeal to the Tax Court, some payments by Mr Leroux and a successful application for interest relief, Mr Leroux was actually refunded $25,000. In the meantime, Mr Leroux lost his business and home. He sued the CRA for misfeasance in public office. CRA argued that it owed no private law duty of care to an individual taxpayer…
Click on the link below to read the rest of the Dentons briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Dentons
News from The Lawyer
Briefings from Dentons
‘Zero tolerance’, automatic suspension approach to safety violations criticised, written warning substituted
Employers are increasingly taking a ‘zero tolerance’ approach in which a minimum level of discipline — whether a suspension or dismissal — is imposed for certain serious safety violations.
DECC has confirmed that there will be a further year-long grace period for large-scale solar PV projects which fail to be accredited under the Renewables Obligation (RO) by 31 March 2015.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
The continent’s boom in natural resources and renewable energy is sparking an infrastructure drive